22 July 1991 00:00 [Source: ICB]
GERMAN PHARMACEUTICAL wholesaler and generics manufacturer Gehe has emerged as the successful purchaser of the eastern German drugs producer Jenapharm. The bid by the previous favourite, Schering, was rejected by the Treuhandanstalt earlier this year (ECN 27 May).
Jenapharm, which has sales of around DM200m ($112m) and 1700 employees, counts among eastern Germany's three largest pharmaceuticals producers. With production plants at Jena, Erfurt, Naumburg and Magdeburg, it produces a wide range of products, with around 50% of sales in hormone products. Prior to reunification, Jenapharm was the only supplier of contraceptives in eastern Germany.
Gehe plans to invest over DM80m in Jenapharm over the next two-and-a-half years. This will include construction of a modern drugs production plant near Jena, with completion by the end of 1993. Some 1300 jobs will be kept.
Schering had planned to invest some DM150m in the company, but admitted there would be 'a certain reduction' in employee numbers. A Schering spokesman told ECN, 'we still feel it was a lost opportunity for both sides as we believe we have the specific R&D and production know-how which would fit Jenapharm's interests.'
Last November Gehe made its first move in eastern Germany with the purchase of sic branches of the former state-owned pharmaceutical wholesaler. A DM100m investment programme for new storage and operating facilities has been underway there for several months.
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